Yahoo Wants to Get Closer to Facebook

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Yahoo chief and former Googler Marissa Mayer said she wants to create a stronger relationship with Facebook and focus on mobile applications.

“A lot of the strengths of Facebook are available to Yahoo users,” Mayer said at an investor conference in San Francisco, according to Bloomberg News. “That’s something we want to build upon. We have a real committment to bringing valuable content to our users.”

Yahoo has lost market share in display advertising since last year and will continue to slide another 8 percent this year. Meanwhile, search titan Google will grow 3 percent and Facebook will move up 1 percent. Mayer apparently has crunched the numbers and realized she has to create a partnership with someone to staunch the flow of losses.

Mayer said that Yahoo will also cut down its 75 apps to a more streamlined number and will also refresh sites such as Yahoo Finance and Yahoo News. Mayer plans on doing this with the 120 new computer programmers she has brought on board in the fourth quarter. She also plans on partnering with Facebook, Google and Apple to benefit from their social media expertise.

Partnering with established companies is a cheaper alternative than creating new products, and if Mayer can find such a partnership then it makes financial sense. Because Mayer left Google we don't think the search titan will be as eager to help her out, so that leaves Facebook and Apple. Apple's social endeavors aren't terribly exciting, so that leaves only one game in town -- Facebook.